After disallowing donations in Income tax what wil be its in tretment in balance sheet as on liabilities side profits wil increase but on assets side what changes wil come since there would be no changes in bank or cash a/c??
Menu
Donations treatment in balance sheet
Replies (2)
You need not to pass any entry for donation disallowed in income tax and it is not required to increase the profit in books. Please note that it is not necessary to match the profit of books with the profit of income tax.
It is wrong to say that profit will increase. The profit of the assessee will remain same. The taxable income is different from the profit shown by the assessee. Therefore, disallowance of donation will have impact on the tax liability but books of account will remain same.
Recent Topics :
- Taxation of Gift - Father to Daughter
- TDS on Property Purchased above 50lakh
- Accounting Treatment in Tally for Restaurant Sales
- Form 146 required
- Rule 86(B) Applicability
- ROC FILINGS FY2025-26
- Mismatch in 26AS
- How Can a Trader Utilise Approximately ₹1.20
- How Can Law Students Present Papers at Conferences
- On which amount 200% penalty under section 270A is
Related Topics :
CAclubindia
